Interserve Share News (IRV)

LONDON (Alliance News) - Interserve PLC's spat with its biggest shareholder over a debt-for-equity swap with lenders could potentially force the outsourcing company into liquidation, the Financial Times reported Thursday, citing a leaked document.

According to FT, if Interserve's restructuring plan is blocked by shareholders, then its lenders would demand a GBP66 million payment, which could force it into liquidation. The payment due date already had been deferred by banks since early last year.

Last Wednesday, Interserve agreed in principle all commercial terms for its debt-for-equity swap with lenders, bonding providers, and its pension trustee.

The newspaper reported that the debt restructuring plan has faced opposition by a third of shareholders, led by hedge fund Coltrane Master Fund LP, which holds a more than 5% stake in the support services firm.

Coltrane, which is planning to present an alternative plan, believes Interserve rushed out the proposed agreement with banks when it could have taken longer to come up with a better deal.

People close to Interserve have warned that that there "there is no plan B", FT reported.

https://www.ft.com/content/0de0d314-305f-11e9-8744-e7016697f225?segmentId=080b04f5-af92-ae6f-0513-095d44fb3577

Shares in Interserve were trading 4.7% lower at 11.24 pence each on Friday.